SEOUL - The South Korean economy is showing signs of gradual recovery, driven by improvements in exports, production, and employment, despite ongoing external uncertainties and volatile raw material prices, according to the Ministry of the Economy and Finance. This assessment, detailed in the ministry's latest monthly economic report, the Green Book, marks a shift to a more positive outlook, acknowledging economic recovery for the first time since June last year.
According to Yonhap News Agency, As per the report, the manufacturing sector's rebound in production and exports and improvements in the service sector and job market have contributed to this recovery. Government data revealed a 1.1 percent month-on-month increase in industry output and a 2.8 percent year-on-year growth in September, buoyed by significant gains in the chip industry. October witnessed a 5.1 percent year-on-year increase in exports, the first in 13 months, and a continued upward trend in employment.
However, the report also noted concerns regarding slower-than-expected declines in prices. Inflation rose for the third consecutive month in October to 3.8 percent, influenced by global oil price volatility and rising costs of fresh food due to adverse weather conditions. The government anticipates inflation to ease slower than expected, with a target of 2 percent by the end of 2024. The ministry also highlighted external factors, including raw material prices impacted by the Russia-Ukraine conflict and Middle East instability, as well as prolonged higher interest rates in major countries.